As Tenant Transition to Open Offices, More Tenants Will Demand that Tenant Improvement Allowances Be Used for Furniture Purchases

office furniture

Office landlords want Tenants to use their tenant improvement allowances for fixed improvements that may have a residual value.  Tenants are reducing the number of enclosed offices and in turn , this lowers tenant improvement costs.  Instead, tenants want to use the savings to purchase their furniture and cabling systems.  Indeed, in open offices, furniture is becoming  a more important determinant of the office layout.  Unfortunately for the landlord, furniture is even less likely to have any residual value.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s